STAMFORD -- The state is proposing to widen Henry and Atlantic streets to add turning lanes, new traffic signal equipment and sidewalk segments as part of a $3.5 million plan to boost traffic capacity and amenities for pedestrians coming into and out of the South End.

The project requires the acquisition and demolition of a 99-year-old three-story brick building at 745 Atlantic St. to accommodate the widened road and addition of new sidewalk segments at one corner of the intersection.

Mani Poola, the city's chief traffic engineer, said the biggest improvement related to the project will be the addition of turning lanes onto and off of Atlantic and Henry streets to separate left turning and through traffic to ease traffic, which has grown, Poola said.

"The main motivation of the project is to keep traffic flow moving and improve safety," Poola said.

As a result of the restriping to reconfigure lanes, drivers will have dedicated left-hand turn lanes off of Atlantic Street onto Henry Street, Estanislau said.

The project is being paid for with $1.9 million in city funds, along with $500,000 from Building and Land Technology the developer of Harbor Point which is located just south of the roadway realignment, and $1.1 million remainder of an earlier state grant that had been used for a similar project on Pacific and Canal Streets.

In addition to requiring the full demolition of 745 Atlantic Street, the city is also negotiating with the owner of 749 and 752 Atlantic Street to acquire part of those properties, Poola said.

Calls to BLT for comment Wednesday and Thursday were not returned. Calls to the city's director of legal affairs Joseph Capalbo about the land negotiations were also not returned.

Clay Adams, the owner of 749 and 752 Atlantic Streets said that his lawyer is negotiating with the city to replace parking that would be eliminated by the city taking part of the rear of his two properties. Adams said that he would like to use his property at 749 Atlantic Street as a commercial property.

"I'm not sure if it will be parking or money," Adams said.

Jose Reyes, whose family runs the El Mercado Food Market and Miguel Jimenez, owner of Dominican Style, a hair salon, at 745 Atlantic St. said they are hoping the city will provide financial assistance to relocate their businesses to Adams' neighboring property or other locations.

Both men said they would like to relocate their businesses with as little down time as possible.

"Neither of us are looking for a lot of money," Reyes said. "We just want to keep working."

Speaking through Reyes, Jimenez said he also hoped the city would help him expedite any necessary regulatory approvals that are associated with hair salons to get his new location open.

"We're hoping to get the help we need because I need to keep working," Jimenez said.

Poola said that the project should be bid out this spring with construction beginning during the summer.

"With all the developments that are there we want to improve the road network," Poola said.